Food delivery app Swiggy on Friday said it has entered into an agreement to acquire restaurant table booking platform Dineout from Times Internet.
Dineout will continue to operate as an independent app post the acquisition, the food ordering company says in a statement.
The acquisition will enable Swiggy to double down on the synergies with Dineout's offerings, including dining out table reservations and events.
Dineout brings with it a network of over 50,000 restaurant partners, Swiggy says, adding it will benefit from this, along with Dineout's team, who has expertise in the restaurant dining out category.
Founders Ankit Mehrotra, Nikhil Bakshi, Sahil Jain and Vivek Kapoor will join Swiggy once the acquisition is completed.
"Dineout is a well-loved brand that enjoys loyalty from both consumers and restaurants. Times Internet and the founding team should be credited for the transformational impact they have brought about in the dining out experience through their products, technology and vast selection of restaurant partners," says Sriharsha Majety, chief executive officer, Swiggy.
"The acquisition will allow Swiggy to explore synergies and offer new experiences in a high-use category," he adds.
In the last 20 months, Swiggy has strengthened its food delivery business, expanded Instamart, its quick commerce grocery delivery to 28 cities, and Genie, its pick up and drop service to 68 cities.
"At Dineout, we always wanted to revolutionise the restaurant industry and this acquisition is an accelerating step towards the same goal. We strongly feel that with Swiggy’s deep understanding of the ecosystem and our shared passion for a superior consumer and restaurant experience, our joint forces will help provide a holistic platform in this industry," says Ankit Mehrotra, co-founder and CEO, Dineout.
In 2020, rival Zomato rechristened its paid membership service Zomato Gold to Zomato Pro after the Covid-19 pandemic shuttered restaurants across the country. Last month, the Competition Commission of India (CCI) said it will conduct a detailed investigation into alleged platform neutrality concerns surrounding food delivery giants Zomato and Swiggy.
The National Restaurant Association of India (NRAI) had alleged that Zomato entered into preferential agreements with certain restaurant partners, going against the ethos of platform neutrality.
As per NRAI, Swiggy commands an overwhelming market share of nearly 70% in the southern region, and in northern India it is Zomato that commands an overwhelming market share of 70%.
Zomato and Swiggy collectively hold a very high market share - stated to be around 90-95% - in almost all regional markets, the antitrust watchdog said.